How to Settle a North Dakota Small Claims Case Before the Hearing

Most small claims cases in North Dakota never reach a hearing. Once both sides see the paperwork and realize what a hearing involves, settlement becomes the practical choice — especially when the amount in dispute is modest and neither party wants to spend a day at the courthouse.

When Settlement Makes Sense

Settlement works best when:

• You agree you owe something, just not the full amount claimed
• The cost of attending the hearing (time off work, travel, preparation) exceeds the disputed amount
• You want to avoid the risk of a judgment on your court record
• The plaintiff is open to negotiation (many are, once they see you filed Form 3 and are taking the case seriously)

Filing Form 3 within the 20-day deadline does not prevent settlement. In fact, it often helps — it signals to the plaintiff that you intend to fight, which makes them more willing to negotiate a compromise.

How to Negotiate

Contact the plaintiff directly. A phone call or email works. Keep it factual and professional — explain what you agree with, what you dispute, and propose a specific number.

Common settlement structures in small claims disputes:

• Lump-sum payment. You pay an agreed amount and the case is dismissed. This is the cleanest resolution.
• Payment plan. You pay in installments over a set period. North Dakota small claims courts do not order payment plans — this must be negotiated between the parties.
• Partial payment plus waiver. You pay part of the claim and the plaintiff waives the rest, often in exchange for immediate payment rather than waiting for a hearing.

Whatever you agree to, get it in writing. A settlement agreement should include the total amount, the payment schedule (if any), what each side is giving up, and a statement that the plaintiff will dismiss the case upon payment.

The Dismissal Paperwork

Payment alone does not close a North Dakota small claims case. The plaintiff must file a Plaintiff's Request to Dismiss Case and Proposed Order to Dismiss Case with the Clerk of District Court. The judge signs the order, and the case is officially closed.

If you are making payments over time, the dismissal typically happens after the final payment. Make your settlement agreement clear about when the plaintiff will file the dismissal — and include a provision that you can file your own motion to dismiss if the plaintiff fails to do so after full payment.

Notify the Court

If you settle before the hearing, notify the Clerk of District Court immediately. The court has reserved time on the calendar for your case, and failing to appear without notice looks like a no-show. A simple phone call or written notice to the clerk is sufficient.

Protecting Yourself After Settlement

Keep records of every payment. Bank statements, copies of checks, or receipts from electronic transfers. If the plaintiff later claims you did not pay, your records are your defense.

Get Form 9 signed. If a judgment was entered before settlement (for example, you settled after a hearing), the plaintiff must file Form 9 — Satisfaction of Judgment to release the judgment lien. An unsatisfied judgment stays on court records and can affect your credit even after you have paid in full.

Store the settlement agreement. Keep it with your case documents for at least six years — the general statute of limitations for contract claims in North Dakota under N.D.C.C. § 28-01-16.

The North Dakota small claims response guide includes a settlement payment tracker and covers the full process from initial response through post-judgment satisfaction.

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